Sean Brodrick: UK rates are at their cheapest since the Bank of England was created in 1694.

Want to see a pretty stunning chart? It’s a chart of borrowing costs in the United Kingdom.  You might say it’s pretty darned cheap to borrow money in merry ol’ England. In facts, rates are at their cheapest since the Bank of England was created in 1694.

Source: The Guardian
Anybody and everybody who can tap capital markets should be locking in these rates. And if you’re a government with bond rates like that, you might want to consider tapping that credit power if your economy is in the tank. Speaking of which, this is how the British economy is doing …

In fact, Britain has slumped to its longest double-dip recession in more than half a century. So why isn’t the British government using its low borrowing costs to, say, jump-start its economy with some public works projects? That would be the smart thing to do, according to every major economist in the world who isn’t on an ideological jihad.
But Britain’s Conservative-led coalition believes austerity is the key to solving Britain’s problems. The Cameron government believes they must keep rates low, lest they turn into Greece. But I’d say that’s the least of your worries, mate. Austerity has killed growth, which has killed confidence, which has helped keep rates down.
But it’s also turning the unemployed into the unemployable, and hollowing out the country’s industrial base.
Americans should keep this in mind in the Presidential elections. One candidate is running on the austerity ticket.  Be careful. You might just get what you SAY you want. 
(h/t  @SeanBrodrick)